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Dubai: The Gulf’s construction pipeline remained stable at $1.8 trillion (Dh6.6 trillion) in 2011, despite economic challenges that have affected the real estate and construction sectors in recent past.

On a year-on-year basis, GCC projects planned and under way are down just over 16 per cent, according to the latest construction project tracker by Citi Group.

However, when Iraq and Iran are included, the combined value of the construction projects ongoing and announced reaches $2.5 trillion.

Last November, over $91 billion of new projects were announced across the main Mena markets. This includes a $68 billion low-cost residential project in Saudi Arabia. Excluding this the total amounts to just over $23 billion.

Saudi Arabia remains Mena’s largest construction market at almost $660 billion. Key positives include a 27 per cent increase in its projects pipeline to $265 billion; a $25 billion jump in its preliminary stage projects to $273 billion and a 6 per cent decline in delayed projects to $343 billion.

“The UAE remains Mena’s second largest market at $592 billion. However this is down 27 per cent year-on-year. The UAE accounts for 56 per cent of cancelled and delayed projects for the main Mena markets [$1.7 trillion],” Heidy Rahman, Citi research analyst, said.

Early stage

“Its project pipeline is flat at $160 billion. Its early stage projects are also flat at $126 billion.”

Iran is the region’s fourth largest market. It has dipped in recent months to $308 billion. As previously highlighted, UN sanctions remain the country’s key challenge.